TiVo to broaden Internet-based content

DavidB. Wilkerson

AnaCampoy

CHICAGO (MarketWatch) -- TiVo Inc. said Tuesday it would offer its users the ability to download content from the Internet and play it on their TV sets.

The company's expanded broadband strategy includes a "unified search" function that will allow DVR viewers to search across broadcast, cable and broadband content sources and record any of them.

Alviso, Calif.-based TiVo
TIVO, +0.47%
expects to implement its new service by the end of the year through an upgrade to the TiVo Desktop software.

Shares rose 7.1% to close at $6.34.

Last year, the company rolled out a feature that allowed TiVo recordings from televisions to be transferred to PCs. Later in 2005, it announced that it would make unlimited TV downloads available on the Apple iPod and the Sony PlayStation handheld devices.

The software, which some subscribers already use to view photos from the Web and listen to Internet radio, will cost $24.95 for new users and will be a free upgrade for current users.

TiVo will also introduce a home movie service that lets people set up private channels to send and receive home videos, as well as a service that offers TV and film recommendations from a number renowned Hollywood actors and directors.

TiVo also said it would expand its TiVo Cast Service, adding CBS Interactive
CBS, -1.53%
Forbes and specialized health content to the offering, which delivers broadband programming directly through the TV.

TiVo's new service is the latest attempt to breach the divide between the Internet and television.

Earlier this year, Apple Computer Inc.
AAPL, +1.82%
unveiled plans to introduce a new wireless device to allow consumers to manage and playback their digital-media files on their televisions. And Microsoft Corp.
MSFT, +1.27%
has partnered with Hollywood studios to deliver downloadable movies through its Xbox 360 game console.

The provider of technology and services for digital video recorders said its service will only work with downloaded videos that are not copy-protected, such as many video podcasts and user-generated clips.

Content bought from online stores like Movielink or iTunes will not be supported, although TiVo officials said they will try to offer protected content in the future.

During this time of transition for Hollywood studios and television networks, there is more willingness to embrace convergent technologies, if only to make sure younger viewers don't tune out traditional media altogether as they spend more time on PCs and handheld devices.

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